Lawsuit: Tax Authority Rules Favor Gays

A class-action lawsuit against the Tax Authority seeks damages of NIS 300 million over a case of discrimination in Israeli tax law. The suit is being brought by Yaakov and Ofra Schatz, representing a coalition representing families – who claim that the Tax Authority is discriminating against them, in favor of same-sex couples, by giving the latter a choice as to which member of the pair is eligible for an additional tax credit point, while heterosexual families do not get to choose.

Under Israeli tax law, each individual is awarded a half point tax credit, while mothers are granted an extra half point for each child. The points are applied as deductions to gross incomes, so the higher an individual's income, the more valuable the points. As mothers generally earn less than fathers in most Israeli families, the impact of the tax credit is somewhat muted. Only mothers are eligible to receive the credits on behalf of their children.